subject: The Path To Fortune: Is Profiting From Short Sales For You? [print this page] The Commercial Foreclosure Goldrush The Commercial Foreclosure Goldrush
In Brief One only need look at the state of the real estate market now, after the multi-million dollar property crash, to know that real estate is a risky business. Despite this, it remains profitable for people who use the right strategy to minimize that risk. How is this, you may wonder, if property values are plummeting? Well, it is because of the sad state of the real estate market that you have a new opportunities, thanks to the increased prevalence of foreclosures and short sales.
Commercial Short Sales 101
So how do you profit from a commercial short sale? First, you find a distressed property, or a property that is several months behind on its payments and facing foreclosure. Next, you make an offer to the owner of the property as well as the lender. This offer will be less than the property is worth in real terms, but many lenders will accept a loss on the property because going through the foreclosure process is expensive and risky. Then, you can try and find a buyer for that property yourself, and net whatever discount you managed to wrangle from the lender. Of course, you assume much of the risk that the bank wanted to avoidif you don't know what you're doing, you won't be able to find a buyer.
Flipping Bank Owned Properties: a General Strategy
To make the profits that make your efforts worthwhile, you must follow several general principles. First of all, you need to seek out connections for buying and selling commercial property where others have not thought to look. Think of the real estate boom as being a modern commercial foreclosure gold rushthe only way you're going to succeed is to know where everyone else is going and pick a different direction. Second of all, you need to learn a lot about foreclosures and short sales in a relatively short period of time. Foreclosure law is different in every state, and every local region has its own bureaucratic quirks. Finally, you have to have both the humility to learn from your mistakes and the determination to not give up when they occura rarer combination of character traits than most people realize.
Picking the Right Training Course to Learn From
One last comment about education: finding the right place to learn about short sales is a risky venture in itself. Again, think of the gold rush. Along with all the prospectors looking for fortune came the scammers who sought to rip them off with knockoff maps and bogus gold detectors. Likewise, you need to be sure that anyone selling you a training course about the short sale market is legitimate. The biggest danger is paying for information that is available anywhere. Do your homework ahead of time and ask a lot of questions before enrolling in a training course.
